April 17, 2006

LET'S USE THE GOOD CHINA:

In India, 'next great' industrial story (Anand Giridharadas, 4/17/06, International Herald Tribune)

As global manufacturers seek new places to plant their flags, India - where factories have long been conspicuous for their relative absence - is seeing early stirrings of an industrial renaissance. The effects could be profound for India's vast number of poor people, and for the international sourcing of goods from cars to bras.

For decades, manufacturing in India has been hobbled by antiquated labor laws, creaking infrastructure and paperwork. The new economy of call centers and software campuses arrived to buoy the relatively privileged, but for many of the three-quarters of Indians with less than middle-school education, few factories meant few jobs.

Across India, total exports - mostly manufactured goods - are rising at a 26 percent annual clip, the Commerce Ministry reported recently. The manufacturing sector is growing at 9.4 percent annually, compared with 6 percent a year from 1991 to 2004, according to the Finance Ministry.

Special economic zones - the same enclaves of relative economic freedom that spearheaded China's export-led industrialization - are now spreading here, providing tax holidays, more control over infrastructure like water and power and less regulation. At least 75 zones are in the works, with more than a dozen already operating.


India faces many of the same challenges as China--from population implosion to not being a coherent sovereign state--but has the great advantage of being an Anglospheric democratic ally, not an enemy.

Posted by Orrin Judd at April 17, 2006 4:04 PM
Comments

Cute title.

Posted by: Mike at April 17, 2006 7:56 PM
« THERE'S ANOTHER NAME FOR THAT... (via BJW): | Main | HONEYBALL: »